⏩The Mortgage Underwriting Process When Buying A House - czcams.com/video/k1_5wlYpiGE/video.html ✅ - Need to get connected a real estate or mortgage expert local to your market? Please reach out at www.theeducatedhomebuyer.com/expert
Would sellers use assumable loan strategy if there is little to no equity to avoid a foreclosure? I feel like a lot of FHA loans are more likely to have people defaulting in the near term. Also love his He>I hat 🙌
I think sellers in tough situations would be open to nearly any solution that prevents a foreclosure. Glad you like the hat. I inherited one from my Dad when he passed so now it's a tradition that keeps me close to him!
@@TheEducatedHomebuyer thanks! Hopefully house prices drop and more continue to pop up. The one I saw yesterday ended up having 150k in equity 😅! And sorry to hear about your dad. I lost mine as well. Take care!
I appreciate the info! Thought it would be nice to get a 2nd property and take over a lower interest rate and offer above market. Thanks for all you guys do!🖐️
Yes. A couple of things to note. VA offers a spousal release to release the departing (vs retaining) spouse from liability so an assumption shouldn't be necessary. FHA will allow an assumption so this should be possible. Most conventional loans do not allow assumptions but a spousal assumption with a court order as part of a divorce is an exception with Fannie and Freddie so check with the servicer of the current mortgage.
PMI refers to Private mortgage insurance and applies to conventional and some jumbo loans. FHA has mutual mortgage insurance, currently .55%, as part of your monthly payment and a 1.75% upfront premium. USDA is similar but cheaper, .35 for the monthly premium and 1.00 for the annual. VA does not have mortgage insurance but does collect a funding fee at closing, similar to the upfront premium on FHA/USDA, that can vary from 1.5-3.3% of the loan amount. Disabled veterans and purple heart recipients are exempt.
I pay $18 a month for MIP with our USDA loan. "USDA loans don’t have PMI. But these specialized loans require two different forms of mortgage insurance: an upfront guarantee fee and an annual fee that serves as the monthly mortgage insurance premium."
I've lived in my home since 2007, but at the time we only put the loan in my ex husbands name. Through the divorce we agreed to him keeping the business and all financial gains, and I would buy the home for what is owed, which is $259k. The house has not been appraised, but appx value is currently $380k. With current interest rates, I cannot afford the mortgage, but have been paying the current 4% mortgage with no issues for over a year. Would assuming the loan be the best option for both parties? Can he gift the equity without taking a financial hit?
There are really only 2 ways to cover the equity gap: 1. Pay it out of pocket with a down payment or 2. Finance the difference. You can finance the difference with a loan or line of credit from a bank or mortgage lender, or with a seller carry if the seller is willing and able to hold a note. Thanks for watching!
IIn most cases, no. FHA, VA and USDA require the buyer to owner occupy. BUT, if you don't ask, the answer is always no. Your best bet, once you've located a seller with assumable financing, is to reach out to their servicer and get all the eligibility requirements. Thanks for watching!
Hi Sienna...I'm not sure what you're saying no to. In a purchase with a loan assumption, all non-mortgage related fees (title insurance, settlement/escrow, recording, etc.) will still be incurred. There will also be charges in relation to the assumption. The current lender has to process and approve the assumption in addition to preparing the assumption documents. The cost will be less than a new mortgage but there will definitely be fees. Thanks for watching.
⏩The Mortgage Underwriting Process When Buying A House - czcams.com/video/k1_5wlYpiGE/video.html
✅ - Need to get connected a real estate or mortgage expert local to your market? Please reach out at www.theeducatedhomebuyer.com/expert
Would sellers use assumable loan strategy if there is little to no equity to avoid a foreclosure? I feel like a lot of FHA loans are more likely to have people defaulting in the near term. Also love his He>I hat 🙌
I think sellers in tough situations would be open to nearly any solution that prevents a foreclosure. Glad you like the hat. I inherited one from my Dad when he passed so now it's a tradition that keeps me close to him!
@@TheEducatedHomebuyer thanks! Hopefully house prices drop and more continue to pop up. The one I saw yesterday ended up having 150k in equity 😅! And sorry to hear about your dad. I lost mine as well. Take care!
great episode
Thanks Bill 🙏
I appreciate the info! Thought it would be nice to get a 2nd property and take over a lower interest rate and offer above market. Thanks for all you guys do!🖐️
Thanks for watching and all your support Rick. Glad you found the content helpful!
What state are you located in?
Can one use it to buyout a spouse out of the office the house
Yes. A couple of things to note. VA offers a spousal release to release the departing (vs retaining) spouse from liability so an assumption shouldn't be necessary.
FHA will allow an assumption so this should be possible.
Most conventional loans do not allow assumptions but a spousal assumption with a court order as part of a divorce is an exception with Fannie and Freddie so check with the servicer of the current mortgage.
Fha will have pmi...VA no USDA NOT sure
PMI refers to Private mortgage insurance and applies to conventional and some jumbo loans.
FHA has mutual mortgage insurance, currently .55%, as part of your monthly payment and a 1.75% upfront premium.
USDA is similar but cheaper, .35 for the monthly premium and 1.00 for the annual.
VA does not have mortgage insurance but does collect a funding fee at closing, similar to the upfront premium on FHA/USDA, that can vary from 1.5-3.3% of the loan amount. Disabled veterans and purple heart recipients are exempt.
I pay $18 a month for MIP with our USDA loan. "USDA loans don’t have PMI. But these specialized loans require two different forms of mortgage insurance: an upfront guarantee fee and an annual fee that serves as the monthly mortgage insurance premium."
I've lived in my home since 2007, but at the time we only put the loan in my ex husbands name. Through the divorce we agreed to him keeping the business and all financial gains, and I would buy the home for what is owed, which is $259k. The house has not been appraised, but appx value is currently $380k.
With current interest rates, I cannot afford the mortgage, but have been paying the current 4% mortgage with no issues for over a year.
Would assuming the loan be the best option for both parties? Can he gift the equity without taking a financial hit?
What type of loan is it (Conventional, FHA, etc)? Different programs have different guidelines for spousal assumptions....
Are there other options to finance the difference between the loan balance and listing price?
There are really only 2 ways to cover the equity gap: 1. Pay it out of pocket with a down payment or 2. Finance the difference. You can finance the difference with a loan or line of credit from a bank or mortgage lender, or with a seller carry if the seller is willing and able to hold a note. Thanks for watching!
Can investors assume the low rate? How would investors find those assumable loans?
IIn most cases, no. FHA, VA and USDA require the buyer to owner occupy. BUT, if you don't ask, the answer is always no. Your best bet, once you've located a seller with assumable financing, is to reach out to their servicer and get all the eligibility requirements. Thanks for watching!
No! The only amount the buyer should pay is to close the gap for that equity.
Hi Sienna...I'm not sure what you're saying no to. In a purchase with a loan assumption, all non-mortgage related fees (title insurance, settlement/escrow, recording, etc.) will still be incurred. There will also be charges in relation to the assumption. The current lender has to process and approve the assumption in addition to preparing the assumption documents. The cost will be less than a new mortgage but there will definitely be fees. Thanks for watching.
I've created something for you my Men. Can i send it to you somewhere?
This sounds like a trap...it's not dangerous, is it? 🤣🤣🤣